The Indian rupee fell 19 paise to 74.62 per dollar at the close on Monday, weighed down by high crude oil prices, forex outflows, and heavy losses in domestic equities amid growing geopolitical concerns.
Forex traders said the strength of the US dollar in the international market and a lacklustre appetite for riskier assets also weighed on the local currency. Further, market participants are now watching the US Federal Reserve's January 25-26 meeting for additional cues.
The local currency opened at 74.43 against the greenback on the interbank foreign exchange market and traded between 74.42 and 74.69 throughout the session. Finally, the rupee settled at 74.62, down 19 paise or 0.26 percent from its previous close of 74.43.
The dollar index, which measures the value of the dollar against a basket of six currencies, was 0.12 percent higher at 95.75. Brent crude futures, the global benchmark for crude oil prices, increased 0.33 percent to $88.18 per barrel.
The BSE Sensex closed 1,545.67 points or 2.62 percent lower at 57,491.51, while the broader NSE Nifty fell 468.05 points or 2.66 percent to 17,149.10. According to stock exchange data, foreign institutional investors continued to be net sellers in the capital market on Friday, offloading shares worth Rs. 3,148.58 crore.